Getting paid for doing your chores is a great way for kids to learn the value of money. And more and more parents say they are giving their kids an allowance, with 68% of parents saying they pay their child an allowance, according to the latest finding from the Finder Consumer Confidence Index.
Parents who give their kids an allowance pay an average of $35 a week for helping out around the house, which comes to about $1,830 annually. That means the 68% of parents paying allowances, roughly 46 million parents, give their kids about $85 billion a year in pocket money.
The amount parents are giving their kids is also down a little. Back in Q2 2023, the average amount parents said they were giving their kids was $42. Flash forward to Q1 2023 and that figure sits at $35.
While you might assume that only children would get more than kids with siblings, parents with two kids actually give the most on average at $42 per child.
When asked who’s responsible for paying their kid’s allowance, the majority say the responsibility falls on them (71%), 17% say they share the responsibility and 11% say it’s on their partner.
Roughly 78% of men say they give their kids an allowance, compared to 62% of women.
However, dads ($41) only give slightly more pocket money than moms ($31) a week.
Men are more likely to say they are responsible for paying their kid’s allowance (80%) compared to women (65%).
Almost three-quarters (71%) of millennial parents say they’re giving their kid an allowance, slightly higher than boomers (70%) and Gen Z (69%).
Gen Z give their kids the most pocket money at $37, compared to boomers at $14.
Those in the Northeast are the most likely to pay their kids an allowance at 73%, compared to just 65% in the Midwest.
Parents in the West say they give their children $43 a week for doing their chores, compared to $29 for kids squirreling away their savings in the South.
It looks like not even pocket money is able to escape inflation, with 50% of parents saying they are giving their child more allowance than 12 months ago. About 1 in 7 (14%) say they are paying their kids less than a year ago and a touch over a third (37%) are paying the same.
For those parents who are paying their kids more, the majority of parents (76%) say they increased their kid’s allowance with age, while 12% say inflation was a factor.
Roughly 53% of men say they’re paying their kids more now than a year ago, compared to 47% of women who say the same.
About half of gen X (48%), millennials (51%) and Gen Z parents (52%) say they’re giving their kids a larger allowance than 12 months ago, compared to 14% of boomer parents.
Roughly two-thirds (63%) of those in the Northeast are paying their kids more today than they were 12 months ago.
For kids receiving an allowance, the the largest segment (42%) say they put the money into a savings account, while a third spend it on clothes or entertainment (35%).
Related: Best debit cards for kids and teens
For those kids holding onto their allowance, a standard savings account is the most common place to store it at 66%, with 31% saying their child has a checking account.
A little over two-fifths (41%) of parents say their child has a bank account linked to theirs, while 31% of kids have their own account.
From knowing how much you have in savings to understanding the tax implications that come with investing.
Read more…
You have so many banking options, so make sure yours offers the strongest perks.
Read more…
GoHenry is now Acorns Early. If you’re looking for a GoHenry alternative, try Greenlight, Step, Current, Modak Makers or Chase First.
Modak has no monthly fee, but it’s slim on features. Greenlight starts at $5.99 but is a value for big families.
Modak is a no-frills, free debit card for kids and teens that comes with a virtual or physical card and the ability to set up direct deposit.
Some of the best free debit cards for kids that don’t charge any monthly fees include Step, Current, Cash App, Axos, Chase, Revolut and more.
Kachinga is a kids’ prepaid card with chores and allowance features, but it comes at a cost.
Step banking accounts help kids and teens learn to manage their money while building their credit scores.
Teach your child financial responsibility with this reloadable debit card that comes equipped with parental controls.
Compare the best kids’ prepaid and debit cards designed for ages 13 and under.
See our first-hand review of the Greenlight card to see if the $5.99 monthly fee makes sense for your family.
Our list of the best credit cards for teens includes Step, Greenlight, Capital One Quicksilver and more. See the full list here.